When to File a Claim — and When Not To

One of the most valuable conversations we have with clients is the one that happens before they file a claim. Sometimes the right answer is to file. Sometimes it's to pay out of pocket and protect your claims history.

Start with the deductible math

If your loss is worth $900 and your deductible is $1,000, there's nothing to file. But the math gets interesting when the loss is just above your deductible. Say your deductible is $1,000 and the loss is $1,400. You'd recover $400. But if that claim causes your premium to increase by $200 per year for three years, you've spent $600 to recover $400. That's not a good trade.

What a claim actually does to your rate

• At-fault auto accidents — almost always affect your rate, sometimes significantly
• Home claims you caused — likely to affect rate
• Weather claims — typically affect rate less, but multiple in a short period can still be a problem
• Liability claims — can have significant rate impact and affect carrier willingness to renew

When to definitely file

• Any loss involving third-party injury or liability — don't try to handle these personally
• Large losses where the recovery significantly exceeds the deductible
• Situations where you're not sure of the full extent of damage (water damage especially)

Call us before you decide

Call us with the situation — before you file anything — and we'll walk through the numbers with you. We'd rather help you make the right call than have you file a claim that costs you more in the long run.